Why are BHP shares marching higher on Monday?

BHP shares are rallying today, outpacing the sizeable gains posted by the ASX 200.

| More on:
A female employee in a hard hat and overalls with high visibility stripes sits at the wheel of a large mining vehicle with mining equipment in the background.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

BHP Group Ltd (ASX: BHP) shares are marching higher, up 2.1% in Monday morning trade.

Shares in the S&P/ASX 200 Index (ASX: XJO) iron ore giant closed on Friday trading for $43.25. At the time of writing, shares are swapping hands for $44.17 apiece.

Created with Highcharts 11.4.3BHP Group PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

This comes amid a broader market rally that sees the ASX 200 up 1.2% at this same time.

Here's why BHP shares are posting twice those gains today.

What's piquing ASX 200 investor interest?

Investors look to be bidding up BHP shares following a 2% lift in the iron ore price. The industrial metal has climbed back into the three-figure range, currently trading for US$104.15 per tonne.

While BHP generates significant revenue from copper and coal, iron ore remains its number one revenue earner.

The iron ore price slipped below US$100 per tonne last week amid a weaker demand outlook from China's steel factories. But the industrial metal is rallying as the Chinese government eyes new stimulus measures to revive its flagging, steel-hungry property sector.

BHP shares are also listed on a number of exchanges outside of Australia. And the miner posted big gains on all of these in Friday trading (Friday night Aussie time).

In the United States, for example, BHP stock closed up 4.1% on NYSE on Friday.

How have BHP shares performed longer term?

BHP shares are down 4.8% over the past 12 months. Of course, that's not including the ASX 200 miner's two juicy dividend payouts. Throw those in and the stock's accumulated value is up 3.6% over the full year.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Why did the Mineral Resources share price rip 15% higher today?

The iron ore and lithium giant was the fastest riser of the ASX 200 on Thursday.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Resources Shares

2030 forecast: As Australia's iron ore export earnings decline, copper will rise. What does this mean for BHP shares?

BHP is expanding its iron ore and copper production.

Read more »

An engineer takes a break on a staircase and looks out over a huge open pit coal mine as the sun rises in the background.
Resources Shares

4 reasons to buy BHP shares today

A leading expert outlines four key reasons BHP shares are a buy.

Read more »

Businessman walks through exit door signalling resignation
Resources Shares

Pilbara Minerals share price drops as CFO announces resignation

It’s been a challenging few years for outgoing Pilbara Minerals CFO Luke Bortoli.

Read more »

Miner looking at a tablet.
Resources Shares

What happened with the BHP share price in May?

Did you buy BHP shares in May? Here’s how much the ASX 200 miner returned.

Read more »

Two men in hard hats and high visibility jackets look together at a laptop screen at a mine site.
Resources Shares

Should I buy Fortescue shares today?

A leading investing expert offers his verdict on the outlook for Fortescue shares.

Read more »

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.
Resources Shares

Is this a good time to buy BHP shares?

Should investors jump on the ASX mining shares right now?

Read more »

a miner holds his thumb up as he holds a device in his other hand.
Broker Notes

Why Macquarie expects this ASX 200 copper stock to surge 36% in a year

Macquarie forecasts some hefty gains ahead for the ASX 200 copper miner. But why?

Read more »